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Armando Bartolome
Almost all entrepreneurs want to scale up their businesses. However, not all businesses are ready for this step. Some startups only last for 6 months, and often the problem is the inability to manage their finances or something important that was overlooked. Before scaling up your business, you first need to analyze if it is ready for this next step.
Signs that your business is ready for the next level
If your business meets or exceeds your target, it is one sign that you are prepared for scaling. You must check into the expenses and average revenue of the company to determine its profitability and if it reaches your sales forecast. Set attainable goals. If your plans are met and exceeded, then it only means that you can move the business forward.
You are meeting your target revenue because you are fulfilling the current demand. Your long-term success may become challenging because of the increased market for your business. This would also mean a need for more resources (employees). When you start refusing to take orders because of the increase in demand, this indicates that your business is growing faster than you expected.
As the demand for your product increases, this may also make it more difficult for you to provide your products. If your products are not available, this may disappoint your customers. Hence, you should upgrade your infrastructure to avoid this and to better serve your customers.
Scaling Your Business
Scaling your business means earning higher revenue at a lower investment. To make the scaling effective, you need to improve the profit margin and increase revenue while reducing costs. So, how do you make this happen?
Make it a habit to log expected expenses. The current expenditure will be the baseline for measuring how much it will cost to scale up. All your documents must contain the necessary details to ensure you have enough cash.
A strategic business plan should include monthly sales projections and must consist of milestone deadlines. This will serve as your guide on reaching your goal by listing the target audience, different ways to approach them, and creating marketing strategies to help you track your progress.
Create a cohesive team of people with diverse skills and talents. Choosing specific people for the job may mean an added cost on the entrepreneur’s part. However, looking at it on a long-term scale would benefit the business tremendously. Having a regular meeting to inform what the plans are on how to grow the business and how to improve the service must be a priority. Through these meetings, employees will be able to voice their opinions and suggestions as well as their pain points determined to improve their performances.
It may be wise to hire inexpensive labor and to reduce wastage. This does not mean sacrificing the quality of the products and/or services offered by the business. Ensure the cost of products and services is reduced. Lowering the cost of products and services can also be in the form of reduced rental costs, asking shippers for a special price, buying used equipment, etc. All these can reduce the price of what the business offers.
Build your brand image via established online platforms to optimize your products and/or services. Take advantage of blogs and press releases. The money you save through this can be used to reduce product costs. Remember that the success of your business lies in the kind of customer service that your company provides.
Automation is the key to business flow. A standard process should be put in place to ensure that efficiency and productivity increase, saving you time and money.
A business loan may be needed. But choose wisely which institution to go to, and be aware of the interest rates. You may opt for an investor to lessen the burden of scaling your business. But then again, choose the right people you want to work with and be open about investor control options.
Supplement your marketing efforts to help grow the business. Implement marketing strategies that excite customers to continually return to your shop. Provide something unexpected that will be happily accepted by your customers.
Elaborate planning is required for any business goal. These will serve as your guide when the time comes, like when you need investments, automation, new employees, etc. It should be stressed, however, that scaling the business also means facing several challenges. Take advantage of every spot, and avoid errors. Always keep data and processes updated. Also, focus on increasing customer retention. Use the customers’ feedback and suggestions to help improve your business.
The hardships you go through are worth it. Just remember to stay focused on your goals. Nothing is impossible for a persevering entrepreneur.
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For more information, you may contact Armando “Butz” Bartolome
by email: business.mentor@butzbartolome.com
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
website: https://www.gmb.ph
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